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Updated On : June 25, 2025

TDS on EPF Withdrawal – Section 192A Explained

Section 192A of the Income Tax Act, 1961 governs Tax Deducted at Source (TDS) on premature withdrawal of EPF (Employees’ Provident Fund). Introduced in Budget 2015, it ensures that untaxed PF withdrawals before five years of continuous service are taxed.

🔍 When is Section 192A Applicable?

Withdrawal amount from EPF exceeds ₹50,000.
Employee has served for less than 5 continuous years.
PAN provided → 10% TDS.
No PAN provided → 30% TDS (Maximum Marginal Rate).

📋 Example

Example: Mr. Raj has worked for 3 years and withdraws ₹70,000 from his EPF account. He has submitted PAN but not Form 15G. TDS of ₹7,000 (10%) will be deducted.

❌ When TDS Under Section 192A is NOT Applicable

EPF amount withdrawn is less than ₹50,000.
Employee has completed 5 years of continuous service.
Withdrawal due to termination because of ill health, business closure, etc.
Transferred PF to NPS account.
Form 15G/15H is submitted and income is below taxable limit.

📝 Form 15G/15H: How it Helps

Employees whose total income (including EPF withdrawal) is below the basic exemption limit can submit Form 15G (for individuals below 60 years) or Form 15H (for senior citizens) to avoid TDS.

⚠️ Common Mistakes & Practical Tips

Mistake: Not providing PAN → 30% TDS is deducted.
Mistake: Withdrawing before 5 years assuming it's tax-free.
Tip: Use Income Tax Calculator to plan withdrawals.
Tip: Keep track of EPF contributions via the EPF portal.

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Frequently Asked Questions (FAQs) – Section 192A

1. What is Section 192A of the Income Tax Act?

Section 192A mandates TDS on premature EPF withdrawal if the service period is less than 5 years and the amount exceeds ₹50,000.

2. When is TDS deducted under Section 192A?

TDS is applicable if EPF is withdrawn before 5 years of service and the withdrawal exceeds ₹50,000.

3. What is the TDS rate if PAN is provided?

10% TDS is deducted if PAN is submitted by the employee.

4. What is the TDS rate if PAN is not provided?

In absence of PAN, TDS is deducted at the maximum marginal rate of 30%.

5. Is EPF withdrawal taxable?

Yes, premature EPF withdrawal before 5 years is taxable unless exempt under specific conditions.

6. How can I avoid TDS on EPF withdrawal?

Submit Form 15G/15H if your total income is below the taxable limit, or ensure withdrawal after 5 years.

7. Is Form 15G applicable for EPF withdrawal?

Yes, eligible individuals can submit Form 15G to avoid TDS deduction on EPF withdrawal.

8. Can TDS on EPF withdrawal be claimed back?

You can claim a refund of TDS while filing your income tax return if your total income is below the taxable limit.

9. What happens if I withdraw after 5 years?

There will be no TDS and the EPF amount will be tax-free if withdrawn after 5 continuous years of service.

10. Is EPF transfer also subject to TDS?

No, transferring EPF to another employer or NPS is not considered withdrawal and hence not subject to TDS.

11. How do I calculate 5 years of continuous service?

All EPF contributions under the same UAN or transferred to a new employer count towards the 5-year requirement.

12. Can I submit Form 15G online?

Yes, Form 15G/15H can be submitted online through the EPFO portal while applying for withdrawal.

13. Will I get Form 16A for EPF TDS?

Yes, EPFO issues Form 16A as TDS certificate for any tax deducted under Section 192A.

14. What if my PAN is incorrect in EPF records?

Incorrect PAN may lead to higher TDS deduction at 30%. Always verify and update PAN details on the EPFO portal.

15. How can DisyTax help with EPF taxation?

DisyTax assists with tax planning, Form 15G/H filing, and claiming TDS refunds for premature EPF withdrawal.

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